Shell Invests in Startup Blockchain Tech for Energy Tracking
By Luke Flowers – Cryptocurrency Enthusiast
A blockchain startup based in the United States that wants to “democratise the energy industry” has just raised an unknown sum from multinational oil company Shell and renowned Japanese firm Sumitomo Corporation Group.
LO3 Energy said, in an announcement made on Wednesday, that it has made a “transactive energy platform” that addresses the difficulties of energy-tracking from various sources across supply networks using blockchain technology.
Kirk Coburn, Shell Ventures’ investment director, said:
“As we move into a less carbonised future, Shell aims to invest in innovative companies that will help enable the energy transition. LO3 Energy fits right in that space.”
Using LO3’s system, users can choose from any local energy resource via a mobile app and also choose a specific supplier. When electricity passes through a power grid normally, a “private, permissioned blockchain” will track the energy source’s details as well as the purchase agreement.
No details have been disclosed but a token could be used for the platform. Users would be able to buy cryptocurrency native to the block for use on their energy bills.
According to LO3’s white paper, the “Exergy” blockchain is designed to “facilitate the optimal coupling of local electric generation to parties that can value, procure, store and utilise this generation most efficiently. The resulting transactions will clear within a participative market-driven environment operating as close to the grid edge as possible.” Most of the functions will be self-executing contracts on a distributed ledger for increased automation.
LO3 claims its product is capable of powering a vast set of business use cases, such as “peer-to-peer energy trading, energy hedging for businesses, virtual power plants, dynamic electric vehicle charging, and demand response.”
With peer-to-peer energy trading, a user may buy crypto native to the block and trade with other users, providing a token is generated for the platform. The platform has the potential to reward users with a token should they have renewable energy attached to their property such as solar panelling. They could then sell crypto generated for profit or trade with other users.
With many new innovative concepts, blockchain technology shall continue to revolutionise many business practices and platforms.
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